DECISION This is a reference under section 50 of the Industrial Relations Ordinance,. 1969 for interpretation of certain terms occurring in the Settlement in writing between the Management and the Labour. It is the case of applicant's namely Bayer Pharma Employees' Union that on 21-10-1992 a settlement was signed between the applicant Union and the respondent Bayer Pharma (Private) Limited. The said Settlement came into force on 1-3-1992 and remained up to 31-8-1994. Under the terms of this settlement some relief has been provided to the workers in respect of increments and bonus etc.
2. Under Clause (2) of the Settlement all the permanent workers will get the Annual Increment in their salaries and wages at the following rates:
(a) 6% of the Gross Salary/Wages to the workers having a continuous service of 10 years;
(b) 7% of the Gross Salary/Wages to the workers having a continuous service of 15 years;
(c) 7.5% of the Gross Salary/Wages to the workers having a continuous service of over 15 years.
3. The company also agreed to pay 1.50 months' consolidated salary as bonus to all permanent workers.
4. Under clause 23(ii) it was provided that the. Benefits allowed to the workmen under the previous Settlement, Agreement, Customs, which have not been modified, shall continue to remain in force.
5. In the year 1986 allowance of Rs.50 per month was notified by the Government for each worker.
Ending the year 1990 Rs.200 per month Special Allowance was also notified by the Government. The Company, however, deducted Rs.250 from the Gross Salary while calculating the increment and also deducted this amount from the Gross Salary for the purpose of calculating Bonus, Ex gratia on Consolidated Salary.
6. Thus the question arises regarding interpretation of the term Gross Salary/Wages and Consolidated Salary occurring in clauses (2) and (3) of the Memo. Of Settlement signed on 21-10- 1992 by the Representatives of the company and also the representatives of the workers/C.B.A.
7. Mr. Shafiq Qureshi, learned Advocate for the applicant's Labour Union has argued that the terms Gross Salary or Gross Wages have not been defined in any enactment and the ordinary usage of the term of the dictionary meaning is to be applied for calculating increments and bonus. On this point he has referred to a decision of the Supreme Court in the case of Annoor Textile Mills Ltd. v.
The Federation of Pakistan (PLD 1994 SC '568): Saleem Akhtar, J. Observed in the judgment that the word 'wages' has different meanings as given to it by the special legislations. Each labour legislation dealing with the wages of all categories of workers or persons has given its own meaning. The literal meaning of .'wage' is the remuneration payable to a worker. It also includes other benefit provided it is so agreed or payable as wages under the law. Under various legislative enactments' term ' wage' has been given wide meaning by including in it allowances of various nature, bonus, house rent and cost of living allowance: The definition of ' wages' in the Black's Land Dictionary is very wide and it includes salaries, commissions; vacation pay, dismissal wages, bonuses and reasonable value of board, rent, housing lodging, payments in kind, tips, and any other similar advantage received from the individual's employer or directly with respect to work for him.
8. The learned Advocate has also relied upon another Supreme Court case of Zain Packaging Industries Limited v. Abdul Rashid (1994 SCMR 2222). In that case it was observed by Saeed-uz- zaman Siddiqui; J. That 'Wages' have been defined differently in various statutes relating to Labour matters keeping in view the object of each Legislation: Therefore, the definition of 'wages' given in one statute cannot be called in aid to interpret the provisions of another statute unless the to statutes are in pari materia or the Legislature has expressly provided that the words and expressions defined in one statute shall have the same meaning in the other statute. The word wages therefore, has to be interpreted according to its ordinary meaning. In its ordinary sense 'wages' would include all payments made to a workman by his employer-on a regular and permanent basis periodically in lieu of his services. .
9. But in the settlement in question the words used-are not only Wages but Gross Salary or Wages and Consolidated Salary. The amount of Rs.250 was allowed to the workers as Cost of Living Allowance even prior to the application of this Settlement and according to clause 23(ii) the previous benefits were to continue to remain in force so that Rs.250 Special Allowance enjoyed by the workers previously could not be excluded or deducted for the purpose of calculation of -the increment or bonus as they formed part of the "Gross" Salary.
10. The learned counsel for the company has, on the other hand, argued that Rs.250 Special Allowance is outside the wages and even Consolidated Salary cannot include the Special Allowance. On the basis of this contention the learned counsel has referred me to section 5 of the Sind Employees Special Allowance Payment Act, 1986, dated November 18, 1986. Section 5 merely says that the Special Allowance shall be paid alongwith wages in accordance with any customs, usage, practice or law applicable to the undertaking. Mr. Abdul Hafiz has emphasized that the words ' alongwith' suggest that the Special Allowances are not part of the wages. He has also relied upon section 7 of the same enactment that Special Allowance shall not form part of wages for the purpose of contribution to provident fund etc. But in the settlement the words used are Gross Wages and not merely Wages; The word 'Gross' could be. Applicable to cover all other allowances including the Cost of Living Allowance.
11. The learned counsel has then relied upon Standing Order 10-C of the industrial and Commercial Employment (Standing Orders) Ordinance; 1968 showing that the company was not making profits and was not, therefore, liable. To pay bonus but the Settlement includes no such reservation.
12. Lastly the learned counsel has referred to the comments filed by him to show that the bonus was to be paid in accordance with the provisions of Standing Order 10-C(1) but the workers cannot be deprived of the bonus agreed upon simply on fantastic pleas that the Company had never agreed to include Rs.50 or Rs.200 allowance in the basic salary.
13. Thus the connotation of the term Gross Salary/Wages or Consolidated Pay are very wide and they include the Special Allowances of Rs.250 for the purpose of increment and bonus. The workers cannot be / deprived of such benefits by raising the plea that they do not form part of the wages etc.
14. I, therefore, answer the reference accordingly. The application is allowed in terms of this Order.